IRA Changes for 2008

2008 is here and along with a new year, there are changes. IRA-related legislative changes for 2008 are now as follows:

You can now roll assets directly from a 401(k) to a Roth IRA - In the past you first had to through funds into a traditional IRA and then convert it into a Roth IRA. It makes the whole deal a little simpler but the same taxes still apply. You cannot get over good Uncle Sam. This can be done right away considering that you make less than $100,000. However in 2010, this limit goes away.
IRA contribution goes to $5,000 - if your under 50 you can now add $5,000 and if your older you can now add up to $6,000. Also, starting in 2008 contribution limits will now be indexed to inflation in $500.00 increments.
Income limits for deductible IRA contributions go up - now your entire IRA contribution will be tax deductible if your modified adjustable gross income (MAGI) doesn’t exceed $53,000 for a single filer or $83,000 for joint filers.
Income limits for Roth IRA contributions go up - Now you can make the maximum Roth IRA contribution if your modified adjusted gross income (MAGI) doesn’t exceed $101,000 for a single filer or $156,000 for joint filers.